Mullaly v. Commissioner
United States Tax Court
Petitioner computed its excess profits credit for the fiscal year ended August 31, 1941, under section 713 of the Internal Revenue Code. Respondent revised petitioner's excess profits tax net income for two base period years by disallowing a portion of certain advertising and publicity expenses for those years as abnormal deductions under section 711 (b) (1) (J) of the code.
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Petitioner computed its excess profits credit for the fiscal year ended August 31, 1941, under section 713 of the Internal Revenue Code. Respondent revised petitioner's excess profits tax net income for two base period years by disallowing a portion of certain advertising and publicity expenses for those years as abnormal deductions under section 711 (b) (1) (J) of the code. Petitioner did not elect to charge to capital account any part of its expenditures for advertising and promotion of good will in those years and has not sought to revise its excess profits net income for the base period…
1Opinion of the Court
OPINION.
Hill, Judge:
Respondent, on his own initiative, revised petitioner’s net income for the taxable years ended August 31, 1937 and 1938, by disallowing a portion of certain advertising and publicity expenses for those years as abnormal deductions under section 711 (b) (1) (J) (ii) of the Internal Revenue Code.1 This revision in petitioner’s net income for these base period years reduced its excess profits credit in the year 1941 and resulted in the deficiency. It is stipulated that petitioner did not elect to capitalize these expenses under section 733 of the Code.2 Petitioner concedes…
2Cases cited1 opinion
- Colson Corp. v. CommissionerUnited States Tax Court · 1945
3Cited by5 opinions
- United States v. William J. HardyCourt of Appeals for the Fourth Circuit · 1962
- Consolidated Motor Lines, Inc. v. CommissionerUnited States Tax Court · 1946
- A. Teichert & Son, Inc. v. CommissionerUnited States Tax Court · 1952
- Consolidated Motor Lines, Inc. v. CommissionerUnited States Tax Court · 1946
- Mullaly v. CommissionerUnited States Tax Court · 1945